Duffy Lauds House Passage Of Bipartisan Corporate Governance Reform

Wednesday, December 20, 2017 | Office of Rep. Duffy l Press Release |

WASHINGTON DC -- Wisconsin Congressman Sean Duffy, Chairman of the Financial Services Subcommittee on Housing & Insurance, today lauded the passage of the Corporate Governance Reform and Transparency Act of 2017 (H.R. 4015). The bill was cosponsored by Rep. Gregory Meeks (D-NY) and Rep. Lamar Smith (R-TX) and passed the House on bipartisan basis with a vote of 238-182.

The Corporate Governance Reform and Transparency Act will protect investors and improve corporate governance of publicly-held companies by requiring proxy advisory firms to:

  • register with the Securities and Exchanges Commission (SEC),
  • disclose potential conflicts of interest,
  • make publicly available their methodologies for formulating proxy recommendations and analyses.  

Federal securities law requires public companies to issue proxy statements to their shareholders before voting on significant corporate actions, such as electing company directors and approving executive compensation packages. To assist them in their voting decisions, many institutional investors hire proxy advisory firms to provide analysis, recommendations and even execute votes on proxy matters. The role of proxy advisory firms in the U.S. economy and in shaping corporate governance is of national significance, however they are not without conflicts of interest.

“Proxy advisory firms play an important role in advising their clients but they are susceptible to conflicts of interest,” said Congressman Duffy. “Investors in Wisconsin and across America expect and deserve certainty that their rights as shareholders won’t be compromised by advisors issuing conflicting recommendations and executing votes. My bill will foster greater accountability, transparency, responsiveness, and competition in the proxy advisory firm industry.”

Watch Congressman Duffy’s remarks on the House Floor on behalf of H.R. 4015

Coalition In Support of H.R. 4015:

  • U.S. Chamber of Commerce
  • Business Roundtable
  • American Fuel & Petrochemical Manufacturers
  • American Petroleum Institute
  • Biotechnology Innovation Organization
  • The Center On Executive Compensation
  • Equity Dealers of America
  • National Association of Manufacturers
  • National Association of Real Estate Investment Trusts
  • National Investor Relations Institute
  • Property Casualty Insurers Association of America
  • Retail Industry Leaders Association
  • TechNet

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